The Cabinet of Ministers has approved a proposal to restructure international sovereign bonds by swapping existing bonds for new ones, adhering to parameters outlined in the debt sustainability analysis conducted by the International Monetary Fund (IMF).

In June 2024, Sri Lanka reached a final debt restructuring agreement with the Official Creditor Committee (OCC), comprising major bilateral lenders. By September 2024, a USD 14.2 billion sovereign debt restructuring deal was agreed upon in principle with international bondholders, following discussions with the AdHoc Bond Holders group and the Local Consortium of Sri Lanka.

President Anura Kumara Dissanayake presented the proposal for restructuring, which was formulated after a detailed analysis by the government’s financial and legal advisors. The analysis considered the composition of Sri Lanka’s sovereign debt, investor dynamics, and settlements, aligning with IMF recommendations under the Extended Fund Facility (EFF) programme.